Kazakhstan Set to Launch National Cryptocurrency Backed by Fiat

Kazakhstan’s Astana International Financial Center (AIFC) and Exante have announced a partnership regarding the development of a national cryptocurrency. The Kazakhstan government intends to launch a state-issued cryptocurrency that is backed by fiat.

The AIFC has announced a partnership with Exante, in which the company’s ‘Stasis’ platform will be used as the foundation for Kazakhstan’s national cryptocurrency. Exante is a Malta-based investment company that that was founded in 2011.

The governor of the AIFC, Kairat Kelimbetov, has expressed the institution’s belief that “blockchain and cryptocurrencies are entering the mainstream of today’s economic reality.” Kelimbetov emphasized the AIFC’s desire to become an international frontrunner in the development and adoption of distributed ledger technology. “Astana’s leading financial regulators have already commenced their work and are laying the foundation for Kazakhstan’s fintech-ecosystem. We believe that the AIFC can become an international hub for blockchain operations and the development of the digital assets market is our key priority in the near future,” he stated.

Kazakhstan Will Host an Upcoming Expo for Blockchain and Cryptocurrency Technologies

Kelimbetov recently discussed an upcoming expo that the AIFC hopes will bolster international perceptions of the fintech and distributed ledger technology industries in Kazakhstan. As reported by local media, the AIFC governor stated “we assume that the territory of the expo will become a kind of crypto valley or crypto harbor. The whole world is very interested in this. Some central banks are supporting this direction, others are looking [at cryptocurrencies] closely.”

During the discussions, Kelimbetov emphasized the AIFC’s desire to balance the fostering of innovation and adoption of cryptocurrency technology with the ensuring of financial stability. “The United States and Singapore want to equate the activities of crypto-economic with ordinary activities in the financial sphere. In Switzerland, this direction is strongly encouraged and Japan supports some cryptocurrencies as a means of payment. We want to say that in this direction AIFC will be on the ‘edge’ concerning understanding the processes that are taking place. But on the other hand, we are responsible for issues of financial stability and regulation of certain financial institutions.”

Kazakhstan Is Working to Develop Its Emerging Fintech Sector

Kelimbetov stated that “the head of state has instructed making AIFC a leading expert center in the development of new financial technologies.” In order to achieve such, the AIFC is expected to soon “join a consortium of international hi-tech hubs which include leading global banks which are currently searching for appropriate solutions, including national and regional cryptocurrencies and in the field of blockchain technologies.”

Earlier this month, the AIFC signed a memorandum of cooperation with Microsoft for the establishment of the country’s Blockchain Innovation Centre – which is intended to foster innovation within the distributed ledger technology start-up space. In July, the AIFC announced that it would work in partnership with Deloitte and Waves to develop a permissive regulatory apparatus for cryptocurrency, blockchain, and fintech businesses.

Do you think that Kazakhstan will become a competitive force within the international blockchain and cryptocurrency arenas? Share your thoughts in the comments section below!

Images courtesy of Shutterstock

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Samuel Haig is a journalist and entrepreneur who has been completely obsessed with bitcoin and cryptocurrency since 2012. Samuel lives in Tasmania, Australia, where he attended the University of Tasmania and majored in Political Science, and Journalism, Media & Communications. Samuel has written about the dialectics of decentralization, and is also a musician and kangaroo riding enthusiast.

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